Answer:
Because of surplus in the market which cannot be corrected.
Explanation:
Above the equilibrium price, the supply of product is greater than its demand. In other words, there is a surplus in the economy.
When a price floor is set above the equilibrium price, it is not binding. It also causes a persistent imbalance in the economy.
This imbalance is caused because of surplus in the market which cannot be corrected by lowering the price as the price is fixed.
